A subcontractor completes electrical work worth $25,000 on a Virginia project but is not paid. The general contractor was paid by the owner. What is the subcontractor's lien priority against the property?
Correct Answer
A) First priority, equal to the general contractor
Under Virginia mechanics lien law, subcontractors have equal lien priority with general contractors, regardless of whether the general contractor was paid by the owner.
Why This Is the Correct Answer
Under Virginia mechanics lien law (Va. Code § 43-1 et seq.), subcontractors have lien rights that run directly against the property and share equal priority with the general contractor's lien. The fact that the GC received payment from the owner does not extinguish the subcontractor's independent lien rights.
Why the Other Options Are Wrong
Option B: No lien rights since the general contractor was paid
This is a common misconception. Virginia law gives subcontractors independent lien rights against the property regardless of payment between other parties. The GC being paid does not eliminate the sub's claim.
Option C: Second priority, after the general contractor
Virginia does not create a tiered lien priority scheme where subcontractors rank below general contractors. All mechanics lien claimants (GC, subs, suppliers) share equal priority under Virginia law.
Option D: Third priority, after mortgage holders only
Mortgage holders and mechanics lien claimants have separate priority rules based on recording dates, not a fixed hierarchy. This option incorrectly invents a fixed third-tier position for subs.
Memory Technique
Remember 'EQUAL WORK = EQUAL LIEN': In Virginia, everyone who improves the property stands on equal lien footing. The property owes money to all who improved it, regardless of who paid whom upstream.
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A homeowner files a mechanics lien claim against a Virginia contractor for $28,000. The contractor believes the claim is invalid. What is the contractor's best course of action?
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